Produce, raw meats, flour, sugar, oils, pasta, rice, even canned and frozen vegetables, etc would all remain tax exempt (I'm basing this whole argument on Massachusetts’s taxation of food, and I know it won't hold true for some other states). Items such as pre-cooked frozen breaded chicken, frozen pizzas, Hamburger helper, mac and cheese, chips, microwavable meals would all lose their exemption.To some extent this is how we do it in CA. It does result in some oddities - A brownie is taxed, but brownie mix isn't for example...